3 June 1999: German tableware, tiles and bathroom fittings company Villeroy & Boch said it was confident of a slight improvement in earnings this year, despite a difficult operating environment.
The …
3 June 1999: German tableware, tiles and bathroom fittings company Villeroy & Boch said it was confident of a slight improvement in earnings this year, despite a difficult operating environment. The company, which due to its product mix is particularly sensitive to conditions in the construction sector and to trends in private consumption, posted a net profit of DM 22.3 million (US$ 11.98 million) in 1998. For the first quarter of 1999, it reported profit on ordinary activities of 1.6 million marks, an improvement from a loss of 1.9 million in the same period a year earlier. “We do not expect any notable improvement in the market sectors which are relevant for us in the whole year,” management board chairman Wendelin von Boch Galhau said. But he added that changes to the company“s product range and restructuring of the firm would pay off in 1999. “With interest income falling, we expect a further rise in profit on ordinary activities in the full year due, to the better operating profit,” he said. Profit on ordinary activites was DM 36.1 million in 1998. Von Boch-Galhau declined comment on a newspaper report which linked Villeroy & Boch to china maker Royal Doulton. “We are not commenting on this. We do not comment on speculation,” he said. His remarks echoed those made by the company“s spokesman, Hans-Hugo Braumann, in an initial reponse to a recent press report linking Villeroy to bid speculation centred on the British group. Von Boch-Gallau added, however, that Villeroy & Boch remained on the look-out for sensible acquisitions. “We are looking around,” he said. “But anything we do will be well thought through and must fit into our framework. We will not acquire firms outside our operating areas.” Royal Doulton“s share price rose more than 17% after speculation that a foreign buyer was preparing a bid. France“s LVMH was also cited as a buyer.